Nexity to Cut 502 Jobs Amidst Construction Crisis; Reveals Restructuring Plan and Diversification Strategies for Future Success

Amidst the construction crisis, French real estate developer Nexity has announced plans to cut 502 positions. Jean-Claude Bassien, the deputy general director of the group, made this announcement on Thursday, stating that a job protection plan will be implemented after an information-consultation process with social partners.

The cost of this plan for Nexity is estimated at around 50 million euros, with expected savings of 36 million euros in 2025 and 45 million per year thereafter. The Promotion-construction division will be hit hardest, with a 27% decrease in workforce compared to 2022.

Nexity’s CEO, Véronique Bédague, highlighted the need for agility and cost reduction to navigate through the crisis. The company aims to achieve savings of 95 million euros by 2026. The restructuring plan also involves increased decentralization and efforts to reduce general and real estate costs.

As the construction sector faces rising costs and reduced demand, Nexity, like other developers, faces challenges in the market. The restructuring plan includes diversification into solar energy and savings products as well as a focus on transforming existing spaces to adapt to changing market conditions.

Despite these difficulties, Nexity remains optimistic about the future, citing positive indicators such as a slight decline in credit rates and an uptick in sales reservations. However, CEO Véronique Bédague warns that the structural housing crisis is far from over and will require time and effort to address effectively.

In summary, Nexity has announced plans to cut positions due to the deep construction crisis facing France’s real estate sector. The restructuring plan involves cost reduction measures aimed at achieving savings of €95 million by 2026 while also increasing decentralization and reducing costs in general and real estate sectors. Despite these challenges, Nexity remains hopeful for the future by focusing on diversification into new areas such as solar energy and savings products while also transforming existing spaces to adapt to changing market conditions.